Economic analysis assumes that...
What will be an ideal response?
changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior
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Monopoly is represented by a single seller
Indicate whether the statement is true or false
If the quantity of a good exchanged decreased, a. It would also increase the price if it was caused by a shift in demand. b. It would also increase the price if it was caused by a shift in supply
c. It would always decrease the price as well. d. None of the above would be true.
In a society with market failure, there
a. is no pollution b. are no public goods c. is an inefficient allocation of resources d. are no markets e. is no need for a government
In the Keynesian model, the government can respond to a recessionary or inflationary gap by:
A. changing the quantity of money. B. relying on the spending multiplier to generate a change in real GDP that is a multiple of the change in autonomous spending. C. changing autonomous spending